AUSTIN, Texas--(BUSINESS WIRE)--
NI (Nasdaq: NATI) today announced Q2 revenue of $302 million, down 3
percent year over year in U.S. dollar terms and up 3 percent year over
year in constant currency terms. In Q2 2015, NI received $10 million in
orders from its largest customer compared with $27 million in orders
from this customer in Q2 2014. Excluding NI's largest customer, the
company's total orders were down 1 percent for the quarter with orders
under $20,000 down 2 percent year over year; orders between $20,000 and
$100,000 down 5 percent year over year; and orders above $100,000 up 9
percent year over year.

"The strength of our business model allowed us to adapt to the impact of
the stronger U.S. dollar during Q2, allowing us to deliver record
non-GAAP operating profit for a second quarter," said Dr. James
Truchard, NI president, CEO and cofounder. "I am confident we are
building the new product pipeline, channel and operational excellence
necessary to drive the long-term growth and profitability of the
company. I am particularly excited about our early success in 5G
wireless, where our innovative technology platform is enabling
researchers to prototype algorithms for next-generation wireless
networks."

GAAP net income for Q2 was $25 million, with fully diluted earnings per
share (EPS) of $0.19, and non-GAAP net income was $32 million, with
non-GAAP fully diluted EPS of $0.25. EBITDA, or Earnings Before
Interest, Taxes, Depreciation and Amortization, was $53million,
or $0.41 per share in the second quarter.

In Q2, GAAP gross margin was 75 percent and non-GAAP gross margin was 76
percent. Total GAAP operating expenses were $190 million, down 4 percent
year over year. Total non-GAAP operating expenses were $184 million,
down 4 percent year over year.

GAAP operating margin was 11 percent in Q2, with GAAP operating income
of $35 million, up 8 percent year over year. Non-GAAP operating margin
was 15 percent in Q2, with non-GAAP operating income of $45million,
up 6 percent year over year.

"Despite significant headwinds related to the strength of the U.S.
dollar and the decline in the Global PMI, I am pleased to see the
company deliver record non-GAAP operating profit for a second quarter.
This past quarter, we continued to execute on our long-term strategy for
mitigating the impact of the strengthening U.S. dollar," said Alex
Davern, NI COO and CFO. "We expect to continue to experience a drag on
our revenue through Q3 because of currency headwinds and lower orders
from our largest customer; however, entering Q4, we expect to have more
favorable compares on both factors, which should allow the strength of
our broad-based business to show through."

The company's non-GAAP results exclude the impact of stock-based
compensation, amortization of acquisition-related intangibles and
acquisition transaction costs and restructuring charges. Reconciliations
of the company's GAAP and non-GAAP results are included as part of this
news release.

Geographic revenue in U.S. dollar terms for Q2 2015 compared with Q2
2014 was up 6 percent in the Americas, flat in Europe, down 13 percent
in East Asia and down 24 percent in the Emerging Markets. In constant
currency terms, revenue in the Americas was up 9 percent, Europe up 14percent, East Asia down 11 percent and the Emerging Markets down 19
percent. NI will evolve into three geographic regions: Americas; Europe,
Middle East, India and Africa (EMEIA); and Asia Pacific. The company
will begin reporting within these three regions next quarter. Management
plans to share more insight on this regional change at its investor
conference on Aug. 4 in Austin, Texas.

As of June 30, 2015, NI had $423 million in cash and short-term
investments. During the quarter the company paid $25 million in
dividends and used $8.5 million to repurchase 288,000 shares of NI's
common stock at an average price of $29.67 per share. The NI Board of
Directors approved a quarterly dividend of $0.19 per share payable on
Aug. 31, 2015, to stockholders of record on Aug. 10, 2015.

Guidance for Q3 2015

The company expects to see a significant headwind on its U.S. dollar
revenue growth for Q3 2015 due to the impact of the strengthened U.S.
dollar. Currently, NI expects this impact to reduce its year-over-year
U.S. dollar revenue growth by approximately 700 basis points in Q3, so
its constant currency growth would be seven percentage points higher
than its U.S. dollar revenue growth. This estimate is based on current
exchange rates, and this estimate can change as exchange rates fluctuate
over the rest of the quarter.

As a result, NI currently expects Q3 revenue to be in the range of $290
million to $320 million. Included in its revenue guidance is an
expectation that revenue from NI's largest customer will be
approximately $5 million in Q3, compared with $17 million in Q3 last
year. At the midpoint, NI's guidance represents a 3 percent
year-over-year revenue decline in U.S. dollars and an approximately 4
percent year-over-year revenue growth in constant currency. The company
currently expects that GAAP fully diluted EPS will be in the range of
$0.14 to $0.26 for Q3, with non-GAAP fully diluted EPS expected to be in
the range of $0.20 to $0.32.

Non-GAAP Presentation

In addition to disclosing results determined in accordance with GAAP, NI
discloses certain non-GAAP operating results and non-GAAP information
that exclude certain charges. In this news release, the company has
presented its gross profit, gross margin, operating expenses, operating
income, operating margin, income before income taxes, provision for
income taxes, net income and basic and fully diluted EPS for the three-
and six-month periods ending June 30, 2015 and 2014, on a GAAP and
non-GAAP basis. NI is also providing guidance on its non-GAAP fully
diluted EPS.

When presenting non-GAAP information, the company includes a
reconciliation of the non-GAAP results to the GAAP results. Management
believes that including the non-GAAP results assists investors in
assessing the company's operational performance and its performance
relative to its competitors. The company presents these non-GAAP results
as a complement to results provided in accordance with GAAP, and these
results should not be regarded as a substitute for GAAP. Management uses
these non-GAAP measures to manage and assess the profitability and
performance of its business and does not consider stock-based
compensation expense, amortization of acquisition-related intangibles,
acquisition-related transaction costs and restructuring charges in
managing its operations. Specifically, management uses non-GAAP measures
to plan and forecast future periods; to establish operational goals; to
compare with its business plan and individual operating budgets; to
measure management performance for the purposes of executive
compensation, including payments to be made under bonus plans; to assist
the public in measuring the company's performance relative to the
company's long-term public performance goals; to allocate resources;
and, relative to the company's historical financial performance, to
enable comparability between periods. Management also considers such
non-GAAP results to be an important supplemental measure of its
performance.

This news release also discloses the company's EBITDA and EBITDA diluted
EPS for the three- and six-month periods ending June 30, 2015 and 2014.
The company believes that including the EBITDA results assists investors
in assessing the company's operational performance relative to its
competitors. A reconciliation of EBITDA and EBITDA diluted EPS to GAAP
net income and GAAP diluted EPS is included with this news release.

Interested parties can listen to the Q2 2015 conference call today, July
28, at 4:00 p.m. CT at ni.com/call. Replay information is available by
calling (855) 859-2056, confirmation code #67096636, shortly after the
call through July 30 at 11:00 p.m. CT, or by visiting the company's
website at ni.com/call. You may also view certain presentation materials
that we may refer to on the conference call at ni.com/nati.

Forward-Looking Statements

This release contains "forward-looking statements," including statements
regarding being confident the company is building the new product
pipeline, channel and operational excellence to drive growth and
profitability; being excited about NI's early success in 5G wireless;
continuing to execute on the company's long-term strategy for mitigating
the impact of the strengthening U.S. dollar; continuing to experience a
drag on NI's revenue through Q3 from currency headwinds and lower orders
from its largest customer; entering Q4 expecting to have more favorable
compares, which should allow the strength of NI's broad-based business
to show through; expecting to see a significant headwind on U.S. dollar
revenue growth for Q3; expecting this impact to reduce NI's
year-over-year U.S. dollar revenue growth by approximately 700 basis
points, so constant currency growth would be seven percentage points
higher; expected revenue from NI's largest customer in Q3; and NI's
guidance for Q3 revenue and GAAP and non-GAAP fully diluted EPS. These
statements are subject to a number of risks and uncertainties, including
the risk of adverse changes or fluctuations in the global economy,
foreign exchange fluctuations, component shortages, delays in the
release of new products, fluctuations in demand for NI products
including orders from NI's largest customer, the company's ability to
effectively manage its operating expenses, manufacturing inefficiencies
and the level of capacity utilization, the impact of any recent or
future acquisitions by NI, expense overruns and adverse effect of price
changes and effective tax rates. Actual results may differ materially
from the expected results.

The company directs readers to its Form 10-K for the year ended Dec. 31,
2014; its Form 10-Q for the quarter ended March 31, 2015; and the other
documents it files with the SEC for other risks associated with the
company's future performance.

About NI

Since 1976, NI (www.ni.com)
has made it possible for engineers and scientists to solve the world's
greatest engineering challenges with powerful, flexible technology
solutions that accelerate productivity and drive rapid innovation.
Customers from a wide variety of industries - from healthcare to
automotive and from consumer electronics to particle physics - use NI's
integrated hardware and software platform to improve the world we live
in. (NATI-F)

National Instruments, NI and ni.com are trademarks of National
Instruments. Other product and company names listed are trademarks or
trade names of their respective companies.